Entrepreneurial Characteristics and Their Impact Across the Various Stages of Sme Existence: A Comprehensive Analysis

The Eastern Cape Province is one of the poorest provinces in South Africa and has a high unemployment rate. Most of the SMEs in the Eastern Cape operate informally and don’t contribute much to job creation. The objective of this study was to investigate the impact of entrepreneurial characteristics on SME existence in the province as SMEs are believed to be an engine of economic growth and employment creation. Existence in the context of this study refers to the three stages of an SME which are establishment, growth and sustainability. Data was collected using a structured questionnaire, self-administered by SME owners and managers. A simple random sampling method was used to select respondents. Statistical software SMART (PLS) was used to analyse the data received. Findings from the study were that entrepreneurial characteristics influence SME existence in the establishment and growth stages. However, there was no significant relationship between entrepreneurial characteristics and SME sustainability. Also, the extent of its influence varies in the various stages of SME existence. The difference in the extent of influence in each stage implies that unique, relevant and more focused SME support is required for each stage. Findings also may help SMEs better understand and make informed decisions on how to avert the impacts of and to improve on their entrepreneurial characteristics. The findings resulted in recommendations to institutions supporting SMEs as well as to owner/managers on how to deal with SMEs in the different stages of their existence